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uranmaximum [27]
4 years ago
12

The difference between a firm's production costs and the value consumers perceive in its products is called ______.

Business
1 answer:
madam [21]4 years ago
7 0

Answer:

The amount of value created

Explanation:

Value creation occurs when a firm perform actions that lead to a rise in the worth or value of the product its produces or the service its renders.

The aim of any business is to create value that give better value to customers in order entice them to buy its commodity at a better price. As a result, the more value a firm creates, the wider will be the difference between the production cost of the firm and the value placed on the products of the firm. This will in turn make the buyers to buy the product of the firm at a higher price which will lead to a higher profitability of the firm.

The implication is that the best method for a firm to increase its profitability is to create more value.

Therefore, the difference between a firm's production costs and the value consumers perceive in its products is called the amount of value created.

You might be interested in
The Southside Corporation budgeted 4,400 pounds of direct materials to make 2,600 units of product. The company actually used 4,
garik1379 [7]

Answer:

$3.75

Explanation:

As we already know that

Direct materials quantity variance = (Budged pounds of direct material  - Actual pounds of direct material) × Standard rate

$1,500 unfavorable  = (4,400 pounds - 4,800 pounds) × Standard rate

$1,500 unfavorable  = 400 × Standard rate

So, standard rate is

= $1,500 ÷ $400

= $3.75

We simply applied the above formula

5 0
4 years ago
Read 2 more answers
Imagine you are the marketing manager for a U.S. manufacturer of disposable diapers. Your firm is considering entering the Brazi
Radda [10]

Answer:

1) The firm should not use the same advertisements in the U.S. and Brazil because culture plays an important role in advertising, and the cultures of both countries are very different. Something that is culturally acceptable in the U.S. might no be so in Brazil and viceversa, and advertisements usually make use of cultural references to build rapport with the potential customers.

When determining the local prices in Brazil, management should take advice from local managers but it should still try to determine the final prices only after doing extensive market research.

2) I do not agree. On the contrary, it is likely that we will see a trend toward increasing product customization. This is because more countries are becoming wealthier (for example, China and India), and as a consquence, people now have more disposable income than before, and can be more demanding when it comes to the products they buy.

3) Depending on the country, the job experience for expatriates can be very difficult. Language is probably the most common hardship, if the expatriate does not speak well the language of the host country, then he will likely have a very hard time in the workplace.

Cultural shock, lack of personal relationships, and a general lack of knowledge about how things work can also cause problems.

Companies should train employees before they are sent abroad. They should try to send employees who speak the language of the country if possible, and if not, help them learn a few basics at least. Companies should also instruct their employees about the general culture, geography, laws, and customs present in the country of destination.

5 0
3 years ago
An investor owns $3,000 of Adobe Systems stock, $6,000 of Dow Chemical, and $7,000 of Office Depot. What are the portfolio weigh
Drupady [299]

Answer:

0.1875; 0.375; 0.4375

Explanation:

Given that,

Adobe Systems stock = $3,000

Dow Chemical = $6,000

Office Depot = $7,000

Total Value of stock:

= Adobe Systems stock + Dow Chemical + Office Depot

= $3,000 + $6,000 + $7,000

= $16,000

Portfolio weights of Adobe Systems stock:

= Value of Adobe Systems stock ÷ Total Value of stock

= $3,000 ÷ $16,000

= 0.1875

Portfolio weights of Dow Chemical stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $6,000 ÷ $16,000

= 0.375

Portfolio weights of Office Depot stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $7,000 ÷ $16,000

= 0.4375

3 0
3 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t
Montano1993 [528]

Answer:

$106.02

Explanation:

Div₀ - Div₉ = 0

Div₁₀ = $10 and then will grow by 6% forever

we must first determine the terminal value for year 9 using the dividend growth model:

P₉ = Div₁₀ / (Re - g) = $10 / (10% - 6%) = $10 / 4% = $250

now we shall discount this to present day value:

P₀ = $250 / (1 + 10%)⁹ = $250 / 2.3579 = $106.02

3 0
3 years ago
The chief reason that family and friends are frequent targets of aggression is that
jarptica [38.1K]
I think the most likely reason that family and friends frequently become targets of aggression is that "they're there", that is, they are present when you come home from work, or when something happens and might just accidentally encounter us in a bad mood.

This can be phrased as "they are convenient"- they are there to be the object of frustration. <span />
4 0
3 years ago
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